U.S. Supreme Court to Hear Catholic Charitable Group’s Plea to be Free from Wisconsin Unemployment Tax

The United States Supreme Court on Friday said it would take up a new religious rights case over whether a Catholic charitable organization must pay Wisconsin’s employment tax.

The justices will review a divided state Supreme Court ruling that refused to grant an exemption to the Catholic Charities Bureau, based in Superior, Wisconsin. The state court ruled that the work of Catholic Charities and four related organizations is primarily not religious, although it found that the motivation to help older, disabled and low-income people stems from Catholic teachings.

The case will likely be heard in the spring and decided by the end of June.

Lawyers for the Wisconsin groups argued to the court that the decision violates religious freedoms protected by the First Amendment. They also said the court should step in to resolve conflicting rulings by several top state courts on the same issue.

Attorneys with the Becket Fund for Religious Liberty say they’re confident the U.S. Supreme Court will reject the ruling.

“We’re hoping that the Supreme Court ultimately rules in favor of our client and recognizes that Catholic Charities Bureau is operating for religious purposes and forwards the Diocese of Superior’s religious mission to serve the poor and needy,” said Becket attorney Colten Stanberry.

Wisconsin Attorney General Joshua Kaul had urged the high court to stay out of the case, arguing that much of the groups’ funding comes from state and local governments, and the joint federal and state Medicaid program.

Employees don’t have to be Catholic and “people receiving services from these organizations receive no religious training or orientation,” Kaul wrote.

Catholic Charities has paid the unemployment tax since 1972, he wrote.